Fab's parent company, Hem, announced Tuesday morning that the
remnants of Fab had been sold to PCH, a design and manufacturing
company. Insiders say the deal was valued between $15 and $50
million based on PCH's stock.

All of the funds from the sale will be poured into Hem, a new
private label furniture company led by Fab's co-founder, Jason
Goldberg.

Today we sold the Fab part of
our business to PCH. This transaction allows us to focus 100% of
our resources on Hem. All of the funds raised from that
transaction will be reinvested into Hem. The stockholders that
originally invested in Fab will continue to hold the same
ownership interest in Hem.

I believe that PCH is the
perfect partner to carry the Fab brand forward. Renee Wong, who
has been the GM since May 2014, will continue to lead Fab. She
has built a strong team and she is a terrific
operator.

It’s personally very satisfying to see Fab land in a great place
with PCH. PCH is known for its world-class operations, and its
deep appreciation for brand, design, and the customer
experience. PCH is the perfect home for Fab.

Onward With Hem.

Since we began this journey in 2011, our mission has always been
to make design more accessible – to innovate and introduce design
to new audiences and people of all ages. We continue to do that
today at Hem where our mantra is: Design Made Easy.

Today, in selling Fab to PCH, we are taking a big step forward in
our plan to focus our resources entirely on Hem. We’re going
all-in on full-stack commerce and private label design.

Hem is well financed and on solid ground.

We are following a specific plan to create a valuable company
that exceeds our customers’ expectations and that all of our our
employees and shareholders will all be tremendously proud of for
the long term. These are still early days.